Shaquille O’Neal Settles FTX Lawsuit with Investors

Shaquille O’Neal has reached a confidential settlement with investors who alleged losses stemming from his promotion of the collapsed cryptocurrency exchange FTX, according to a filing in the U.S. District Court for the Southern District of Florida.

Terms of the agreement remain sealed, though court documents state they will be disclosed once investors request preliminary court approval.

O’Neal was one of several high-profile figures accused of endorsing FTX prior to its collapse in late 2022. The case is part of a broader multidistrict litigation effort in which plaintiffs are seeking up to $21 billion in damages from FTX insiders, promoters, and advisers—well beyond the $9.2 billion identified in bankruptcy proceedings.

Other celebrities named in the lawsuit include Tom Brady, Gisele Bündchen, Kevin O’Leary, Naomi Osaka, David Ortiz, and Udonis Haslem.

Early efforts to serve O’Neal with legal papers were met with difficulty, with attorneys accusing him of evading service for months. Legal teams resorted to creative tactics, including attempts during NBA games and at his various residences.

O’Neal Also Settles NFT Lawsuit for $11 Million

The FTX settlement comes shortly after O’Neal agreed to pay $11 million to settle a separate class-action lawsuit tied to his promotion of the Solana-based Astrals NFT project. The suit alleged that the NFTs were unregistered securities and that O’Neal misled investors through promotional activity.

He was served during an NBA game in May 2023 at Miami’s Kaseya Center—formerly known as FTX Arena. In August 2024, a federal judge ruled that O’Neal must defend some of the claims in the Astrals case.

Astrals is a Web3 project built on Solana, featuring a 10,000-NFT collection, a metaverse called Astralworld, and a governance token known as Galaxy, operated via a decentralized autonomous organization (DAO).

As cryptocurrencies were gaining popularity among celebrities and influencers, investors faced an increasingly blurred line between collectibles and frauds. In 2023. Cristiano Ronaldo launched his non-fungible token (NFT) collection in collaboration with Binance. However, his involvement has not been without controversy. The football star faced a class action lawsuit in a United States district court in Florida related to his previous participation in NFT sales with Binance.

The plaintiffs allege that Ronaldo’s endorsement led them to make investments that resulted in significant losses. They are seeking damages exceeding $1 billion.

Previous NFT collections featuring Ronaldo offered perks beyond the digital space, including premium experiences such as opportunities for holders to play football with Ronaldo as part of Binance promotions.